Aarrowcast Sold to Equity Group

Aarrowcast Inc., a Wisconsin ferrous foundry, has been acquired by Industrial Opportunity Partners, a private equity group. The seller was J H Whitney Co., also an investment fund. The cost of the purchase was not announced but the buyer noted that the foundry’s senior managers would remain in place.

Aarrowcast, Shawano, WI, is a gray, ductile, and austempered ductile iron foundry that was established in 1978 and expanded in 1997. Earlier this year it reported it had started work on a 20% capacity expansion focused on its melting, blast cleaning, and automated grinding operations. That project would be completed by mid-2013.

The value of that investment was not released either. The new owners intend to continue the capacity expansion plans, according to IOP senior managing director Adam Gottlieb. “In general, capacity and throughput expansion is the primary emphasis of IOP's investment strategy for Aarrowcast,” Gottlieb explained in an e-mail message.

Ben Grigg, Aarrowcast’s president and CEO, will remain with the business, and IOP named as the new chairman of the foundry one of its principal investors, Andrew Weller.

“We are thrilled to be partnering with Industrial Opportunity Partners, whose operational experience and strategic support will enhance Aarrowcast’s continuous effort to deliver high-quality products and extraordinary service levels to our customers,” Grigg stated.

Weller reportedly has experience in ferrous foundry management and operations. His online biography indicates he is also the chairman of Center Manufacturing Inc. and a director of Gulf Coast Machine & Supply Co. and Carlson Systems Holdings Inc.

“Aarrowcast has built a reputation with its customers, suppliers, and employees based on unmatched manufacturing abilities, service levels and product breadth. I look forward to working closely with Ben, his team, and all Aarrowcast employees in continuing to invest in the Company to achieve further growth,” according to Weller.